It is clear that the market is on a roll, despite the lack of quality product in the center of Madrid and Barcelona.

Real estate investment in the office segment so far this year has totaled nearly 2.5 billion euros. 80% of the volume of operations, 1.9 billion euros, has taken place in the Madrid office market, which is already 15% above the total for 2014. The vacancy rate for quality offices in the center of both Madrid and Barcelona has reached levels unlike any seen in years, which means there isn't enough stock to meet demand from operators looking for quality spaces.

This lack of stock hasn’t stopped rent from rising, through. In Madrid, rent prices are up in nearly every neighborhood. In fact, rent in the prime areas is up fifty cents to 26.50 euros per meter per month, while in the second ring it’s up 1.64% to 15.50 euros and on the outskirts to 12.75 euros, with a 2% increase that hadn’t been seen since before the crisis.

Rents continue to rise in Barcelona for the fourth consecutive quarter, fueled by the alarming lack of quality stock and strong demand. In fact, the highest rent on Paseo de Gracia-Diagonal this quarter is at 19.50 euros in the best buildings.

SOURCES El País